Morgan Stanley has filed S-1 registration statements with the U.S. Securities and Exchange Commission (SEC) to launch two new crypto investment products: a spot Bitcoin exchange-traded fund (ETF) and a Solana-focused trust.
The move marks a strategic shift for the Wall Street bank, which is now seeking to issue its own digital asset products rather than limit itself to distributing third-party offerings.
A structure designed for direct exposure
The flagship product, the Morgan Stanley Bitcoin Trust, is structured as a spot ETF. Unlike futures-based products, the fund would hold Bitcoin directly, aiming to track the asset’s price performance as closely as possible, net of fees and operating expenses.
According to the filing, the ETF will follow a passive investment strategy and will not attempt to capitalize on short-term market movements. Its net asset value (NAV) will be calculated daily using a benchmark derived from major spot trading platforms.
To maintain liquidity and ensure orderly market functioning, shares will be created and redeemed in large blocks by authorized participants. Retail investors would then gain exposure through secondary market trading via standard brokerage accounts.
A favorable market backdrop for crypto ETFs
Morgan Stanley’s filing comes amid sustained growth in U.S. crypto ETFs.
Recent data show that spot Bitcoin ETFs collectively hold approximately $123 billion in net assets, representing roughly 6.5% of Bitcoin’s total market capitalization. Since the beginning of the year, these products have attracted more than $1.1 billion in net inflows, highlighting continued investor demand.
Alongside its Bitcoin product, Morgan Stanley also submitted a separate S-1 form for the Morgan Stanley Solana Trust. Solana-linked investment vehicles have seen growing traction, with the category surpassing $1 billion in total net assets, supported by substantial inflows in recent months.
Toward vertically integrated wealth management
Beyond the technical filings, the move signals a broader evolution in Morgan Stanley’s digital asset strategy.
Until now, the bank has primarily acted as a distributor, offering clients access to crypto products managed by external asset managers. By launching its own ETFs, Morgan Stanley is pivoting toward issuing in-house investment vehicles.
The decision reflects the economic appeal of the ETF model. Spot Bitcoin ETFs have become meaningful revenue generators for major asset managers, driven by management fees on large and steadily growing allocations.
Morgan Stanley holds a competitive advantage through its vast wealth management division, which includes thousands of financial advisors. By integrating proprietary crypto ETFs directly into client portfolios, the bank can retain fee revenue internally while expanding its exposure to the fast-growing digital asset segment.
Is the firm moving to internalize its investment products?
If approved by the SEC, the Bitcoin ETF and Solana Trust would allow Morgan Stanley to compete more directly with established crypto asset managers.
The strategy underscores a broader trend on Wall Street: large financial institutions are increasingly seeking to control product issuance, distribution, and portfolio integration within their own ecosystems.
Should the filings receive regulatory approval, Morgan Stanley’s entry could intensify competition in the crypto ETF market and further strengthen the bridge between traditional wealth management and digital assets.
